Making Offers for first Multifamily Investment
Hello All!
I am in the process of making offers in order to land my first multi-family investment property in The Dallas Ft area of TX. I have made a few offers which have all been declined unfortunately :(. My analysis has been guiding the offers I have been making. I first look at the list price, then I find the fair market value of the property in that area based on sales records from the past 6 months, finally after getting the average price of the comps/ sq ft, I multiply that number by the actual sq footage of the property I am analyzing to get my FMV. Once I get the FMV I take 10% from that and that gives me my max offer price. The only issue here is that it seems like my offers are coming in quite a bit lower as I am not really getting much interest in counter offers.
Again, this is only my 3rd offer, but just want some reassurance I am on the right track here? Should I try and be a little more competitive even if that cuts into my cash flow? Or just stick to my game plan? Also, is anyone investing in that area that has had success in having offers accepted? How much below list/market price was offered?
Any tips would be much appreciated!
Regards,
GB